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J. Risk Financial Manag. 2015, 8(1), 150-180;

Firm Value and Cross Listings: The Impact of Stock Market Prestige

Federal Reserve Bank of New York, 33 Liberty Street, Main 3, New York, NY 10045, USA
Author to whom correspondence should be addressed.
Academic Editor: Christian Brownlees
Received: 27 October 2014 / Revised: 26 February 2015 / Accepted: 9 March 2015 / Published: 23 March 2015
(This article belongs to the Special Issue Econometric Analysis of Networks)
Full-Text   |   PDF [220 KB, uploaded 23 March 2015]


This study investigates the valuation impact of a firm’s decision to cross list on a more (or less) prestigious stock exchange relative to its own domestic market. We use a network analysis methodology to derive broad market-based measures of prestige for 45 country or regional stock exchange destinations between 1990 and 2006. We find that firms cross listing in a more prestigious market enjoy significant valuation gains over the five-year period following the listing. In contrast, firms cross listing in less prestigious markets experience a significant valuation discount over this post-listing period. The reputation of the cross-border listing destinations is therefore a useful signal of firm value going forward. Our findings are consistent with the view that cross listing in a prestigious market enhances firm visibility, strengthens corporate governance, and lowers informational frictions and capital costs. View Full-Text
Keywords: cross-listings; network analysis cross-listings; network analysis
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

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Cetorelli, N.; Peristiani, S. Firm Value and Cross Listings: The Impact of Stock Market Prestige. J. Risk Financial Manag. 2015, 8, 150-180.

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